Mumbai: Mahanagar Gas Limited (MGL), one of India’s leading city gas distribution companies, has announced its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company reported steady revenue growth during the first quarter of FY27, supported by higher sales volumes across its CNG and PNG segments.
Standalone revenue from operations rose 13.92% year-on-year (YoY) to ₹2,597.89 crore, while total sales volumes increased 7.01% to 433.71 SCM Million. CNG volumes grew 9.74%, while PNG revenue recorded a strong 34.18% YoY increase.
However, profitability declined on a year-on-year basis, partly due to the impact of a one-time trade margin reversal in the corresponding quarter of the previous year.
MGL Q1 FY27 Standalone Financial Performance
MGL reported strong revenue growth but a decline in profitability during Q1 FY27.
- Revenue from Operations: ₹2,597.89 crore, up 13.92% YoY from ₹2,280.44 crore
- Total Income: ₹2,628.26 crore, up 13.66% YoY from ₹2,312.37 crore
- Profit Before Tax: ₹259.07 crore, down 40.06% YoY from ₹432.22 crore
- Profit After Tax: ₹193.70 crore, down 39.39% YoY from ₹319.56 crore
- Basic EPS: ₹19.61, down 39.39% YoY from ₹32.35
- EBITDA: ₹342.98 crore, down 31.50% YoY from ₹500.71 crore
The company’s standalone revenue from operations increased from ₹2,280.44 crore in Q1 FY26 to ₹2,597.89 crore in Q1 FY27. However, profit after tax fell to ₹193.70 crore from ₹319.56 crore in the year-ago quarter.
Read also: Mahanagar Gas Limited Appoints Praveer Kumar Srivastava as MD for 5-Year Term from April 30, 2026
CNG and PNG Sales Volumes Increase in Q1 FY27
MGL recorded a 7.01% YoY increase in total sales volumes to 433.71 SCM Million during the quarter.
The operational performance was as follows:
- CNG Sales Volume: 318.09 SCM Million, up 9.74% YoY from 289.85 SCM Million
- PNG Domestic Volume: 56.67 SCM Million, up 9.09% YoY from 51.95 SCM Million
- PNG Industrial/Commercial Volume: 58.94 SCM Million, down 7.15% YoY from 63.48 SCM Million
- Total Volumes: 433.71 SCM Million, up 7.01% YoY from 405.28 SCM Million
The growth in CNG volumes reflects continued demand from the transport segment. Domestic PNG volumes also increased, supported by the expansion of household connections.
However, PNG industrial and commercial volumes declined during the quarter.
PNG Revenue Jumps 34.18%, CNG Revenue Grows 6.85%
MGL’s revenue performance was led by strong growth in its PNG business.
- CNG Revenue (Net of Excise): ₹1,618.51 crore, up 6.85% YoY from ₹1,514.74 crore
- PNG Revenue: ₹738.56 crore, up 34.18% YoY from ₹550.44 crore
- LNG Revenue: ₹0.90 crore, down 64.14% YoY from ₹2.51 crore
- Total Net Revenue: ₹2,371.71 crore, up 13.95% YoY from ₹2,081.38 crore
PNG revenue increased sharply by 34.18% YoY to ₹738.56 crore, while CNG revenue rose 6.85% to ₹1,618.51 crore.
MGL Consolidated Revenue Rises 13.88%
On a consolidated basis, MGL reported a 13.88% YoY increase in revenue from operations to ₹2,598.90 crore during Q1 FY27.
Key consolidated financial figures were:
- Revenue from Operations: ₹2,598.90 crore, up 13.88% YoY from ₹2,282.07 crore
- Total Income: ₹2,629.33 crore, up 13.62% YoY from ₹2,314.22 crore
- Profit Before Tax: ₹258.01 crore, down 40.19% YoY from ₹431.39 crore
- Profit After Tax: ₹192.64 crore, down 39.53% YoY from ₹318.58 crore
- Basic EPS: ₹19.54, down 39.43% YoY from ₹32.26
Consolidated profit after tax stood at ₹192.64 crore, compared with ₹318.58 crore in Q1 FY26.
EBITDA Rises 31.74% Quarter-on-Quarter
Despite the year-on-year decline, MGL recorded a strong sequential improvement in its financial performance.
Compared with Q4 FY25:
- Revenue from Operations: ₹2,597.89 crore, up 15.05% from ₹2,258.07 crore
- EBITDA: ₹342.98 crore, up 31.74% from ₹260.34 crore
- Profit After Tax: ₹193.70 crore, up 46.83% from ₹131.92 crore
- EPS: ₹19.61, up 46.83% from ₹13.35
EBITDA increased 31.74% quarter-on-quarter to ₹342.98 crore, while the EBITDA margin improved to 14.46% from 12.69% in Q4 FY25.
The sequential improvement came despite higher costs during the quarter.
Higher Natural Gas Costs Impact Margins
MGL’s profitability was affected by higher expenses and the absence of a favourable one-time item recorded in the corresponding period of the previous year.
The company’s purchase of natural gas and traded items increased to ₹1,733.38 crore, compared with ₹1,481.56 crore in the year-ago period.
Other key expenses included:
- Employee Benefits Expense: ₹46.34 crore
- Depreciation and Amortisation: ₹108.55 crore
- Finance Costs: ₹5.73 crore
The EBITDA margin stood at 14.46% in Q1 FY27, compared with 24.06% in Q1 FY26.
The company said the year-ago period included a one-time reversal related to trade margin revenue. This impacted the year-on-year comparison of EBITDA and net profit.
The PAT margin stood at 8.17% of net revenue, compared with 15.35% in Q1 FY26.
One-Time Trade Margin Reversal Impacts YoY Comparison
The year-on-year decline in EBITDA and net profit was also influenced by a one-time reversal recorded in the comparable period.
According to the company’s financial information, Q1 FY26 included a one-time reversal related to trade margin revenue associated with an agreement with oil marketing companies. This resulted in a higher base for comparison in the previous year.
As a result, while MGL’s revenue and operational volumes increased in Q1 FY27, profitability metrics showed a decline on a year-on-year basis.
MGL Continues Investment in Electric Mobility
MGL continued its strategic expansion into emerging energy and mobility segments during the quarter.
The company invested an additional ₹0.99 crore in Optionally Convertible Debentures (OCDs) of 3EV Industries Private Limited during Q1 FY27.
The key details of the investment are:
- Total proposed investment: ₹96 crore
- Total investment made to date: ₹83.99 crore
- Equity stake: 26.13% on a fully diluted basis
- Investment in CCPS: ₹83 crore
- Investment in OCDs during the current quarter: ₹0.99 crore
The investment reflects MGL’s continued interest in the electric mobility segment as the energy and transportation sectors undergo a transition.
MGL Acquires 26% Stake in FPEL Reliant Energy
During the quarter, MGL also invested ₹3.89 crore in FPEL Reliant Energy Private Limited.
The investment enabled the company to acquire a 26% equity stake as a captive user.
The move is part of MGL’s broader efforts to explore opportunities in the evolving energy sector and diversify its strategic investments.
GAIL Transportation Tariff Dispute Worth ₹331.80 Crore
MGL is contesting a ₹331.80 crore transportation tariff demand from GAIL (India) Limited related to the ONGC Uran-Trombay Natural Gas Pipeline.
The matter is pending before the High Court of Delhi, with the next hearing scheduled for August 13, 2026.
The company believes it has a strong case and has not recognised any provision for the disputed amount. MGL has already deposited ₹50 crore with GAIL in accordance with a court order.
₹54.33 Crore GST Demand Under Litigation
MGL is also challenging a ₹54.33 crore GST liability demand under the Reverse Charge Mechanism (RCM) related to road reinstatement charges.
The matter is currently sub judice, with the next hearing scheduled for August 17, 2026.
The management has stated that the company believes it has a strong case and has not recognised any provision for the disputed liability.
Unison Enviro Amalgamation and Restated Comparative Figures
MGL also highlighted the amalgamation of its wholly owned subsidiary, Unison Enviro Private Limited (UEPL).
Pursuant to the Scheme of Amalgamation sanctioned by the National Company Law Tribunal (NCLT), UEPL was amalgamated with MGL with effect from February 1, 2024.
The comparative figures for Q1 FY26 have been restated accordingly to reflect the impact of the amalgamation.
About Mahanagar Gas Limited
Mahanagar Gas Limited (MGL) is one of India’s leading city gas distribution companies. The company supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic, industrial and commercial consumers. MGL is also exploring opportunities in emerging areas such as electric mobility and renewable energy as India’s energy landscape continues to evolve.
